TODAY'S PAPER
34° Good Afternoon
34° Good Afternoon
Business

CA Technologies lays off an additional 600 workers

Islandia-based CA Technologies submitted a filing Thursday, March

Islandia-based CA Technologies submitted a filing Thursday, March 13, 2014 about plans to lay off 600 employees in addition to the 1,200 layoffs that CA chief executive Mike Gregoire announced in May 2013. Photo Credit: Kevin P. Coughlin, 2012

Software maker CA Technologies has laid off an additional 600 employees as the latest step in an effort to streamline its sales force and focus aggressively on innovation, according to a regulatory filing.

The filing, submitted Thursday to the U.S. Securities and Exchange Commission, did not indicate whether the global layoffs impacted employees at CA's headquarters in Islandia. A company spokeswoman declined to provide a geographic breakdown of the cuts.

CA, Long Island's largest company by stock-market value, has long been a software juggernaut that makes programs for mainframe computers, the data-processing workhorses used by airlines, banks and large institutions. But as mainframes have slipped from the cutting edge, CA has struggled to grow.

The company's chief executive, Mike Gregoire, took the helm 14 months ago and has spearheaded a sweeping restructuring to jump-start innovation and push deeper into cloud-based systems, mobile platforms and other cutting-edge technologies.

The new job cuts are in addition to 1,200 layoffs announced in May when Gregoire unveiled the restructuring. CA has filled many of the positions impacted by the earlier cuts, replacing the laid-off workers with engineers who better understand cloud and mobile software.

The company plans to do the same with many of the jobs impacted by the latest cuts, but it is unclear how many.

The shake-up has affected nearly every level of the company and included replacing CA's veteran head of global sales. The company also has consolidated R&D sites to a handful of hubs including Islandia; Austin, Texas; Bangalore, India; Prague, Czech Republic; and Beijing. (Gregoire has said he has no plans to reduce operations on Long Island.)

CA employs about 14,000 people worldwide, including about 1,500 on Long Island.

The latest round of cuts brings the pretax charge for the company's rebalancing plan to $190 million, up from $150 million, including $170 million in severance pay. As a result, CA lowered its 2014 guidance to $1.90 to $1.97 per share, down from $2.01 to $2.08 per share.

CA also said this week that it had sold a data modeling unit to San Francisco-based Embarcadero Technologies. Terms of the deal were not disclosed.

CA's stock closed down 1.22 percent, at $31.48.

Comments

We're revamping our Comments section. Learn more and share your input.

More news